Our opinion on the current state of BHG

BHP is a world-wide commodities company with its headquarters in Melbourne, Australia. It processes minerals, oil and gas and it has 62000 employees, mostly in the Americas and Australia. It produces copper, iron, coal, oil, and gas. BHP owns 57,5% of the Escondida mine in Chile which is one of the world's largest copper producers and also produces some gold and silver. It owns 33,75% of Antamina in Peru which produces copper and zinc. It owns 100% of Pampa Norte which produces copper cathode in the Atacama Desert in Northern Chile. It owns 50% of Samarco in Brazil which produces iron ore and a one third interest in Cerrejon in Colombia which produces coal from an open-cut coal mine. It owns mineral rights in Saskatchewan in Canada which contains one of the world's largest unexploited potash deposits. In Australia, BHP owns Olympic Dam which is one of the world's largest copper, uranium, and gold ore bodies. It also owns Western Australia Iron Ore which is a system of five mines connected by more than 1000km of railway lines. It owns Queensland Coal which comprises the Mitsubishi Alliance and Mitsui Coal. It also owns the Mt. Arthur open-pit coal mine in New South Wales. It owns Nickel West which is a nickel mine with smelters, concentrators, and a refinery. In the petroleum field it owns high quality resources in the Gulf of Mexico, Australia, Trinidad, and Tobago. In its results for the year to 30th June 2023 the company reported revenue down 17% and headline earnings per share (HEPS) down 42%. The company said, "Revenue decreased US$11.3 bn due to significantly lower prices in key commodities. We managed the impact of inflation on costs well relative to our competitors. Underlying attributable profit (which adjusts FY22 for discontinued operations of US$10.7bn) reduced by 37% to US$13.4bn." In an operational update on the first quarter the company said, "First quarter operational performance was highlighted by a 11% uplift in copper production from the previous year". In the half year to 31st December 2023 the company reported copper production up 7% and nickel production up 4%. The company said, "FY24 production guidance ranges remain unchanged for all assets with the exception of BMA which has been lowered to between 23 and 25 Mt (46 - 50 Mt at 100%) excl. Blackwater and Daunia from the expected sale completion date of 2 April 2024." This is a diversified international mining company which is impacted directly by commodity prices and hence from any recovery in the world economy. The share was rising steadily since the commodity cycle turned upwards in January 2016 but fell sharply into a V-bottom with the coronavirus pandemic. After March 2020 it continued its strong upward trend, but has succumbed to falling commodity prices since February 2023. It remains a volatile commodity share.